Like-Kind Property

Properties are of like-kind, if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties. However, livestock of different sexes are not like-kind properties. Also, personal property used predominantly in the United States and personal property used predominantly outside the United States are not like-kind properties.

Real properties generally are of like-kind, regardless of whether the properties are improved or unimproved. However, real property in the United States and real property outside the United States are not like-kind properties.

1031 Exchange for Attorneys and Lawyers

Attorneys and Lawyers are often the First to Recognize the Potential Benefits of a Section 1031 Exchange to a seller of real estate. An attorney should be well rounded in the exchange process and we can assist you in getting “up to speed” on the entire exchange process from start to finish. When a seller is going to replace qualifying real estate with other replacement real estate, a Section 1031 Exchange should be suggested.

It is possible for a seller to employ the services of an Exchange Intermediary at any time after a contract is executed up to the day of closing on the contract. It is too late after the closing has occurred.

If you are an attorney and you believe your client would benefit by using a 1031 exchange, contact us for more information. We can help educate you to better assist your client in his or her decision making process. Remember: It is too late after the closing has occurred.